YPF Continues To Look Attractive But Remains High Risk
Thu, Aug. 4, 5:41 PM
Tue, Jun. 21, 2:28 PM
- Maxus Energy, a U.S. unit of Argentina's YPF, has filed for Chapter 11 bankruptcy protection after reaching a deal on the terms of a settlement tied to liabilities for the cleanup of New Jersey’s Passaic River.
- The deal calls for YPF to provide Maxus, which filed for Chapter 11 along with four other affiliates including its Tierra Solutions unit, with $130M, and in return Maxus will drop any “alter ego” claims it may have against its parent for cleaning up the river.
- A New Jersey state court ruled five years ago that Maxus and Tierra were responsible for dumping of the highly toxic chemical dioxin into the river in the 1950s and 1960s.
- However, Occidental Petroleum's (NYSE:OXY) chemical subsidiary is balking at the proposed environmental settlement; Maxus filed for bankruptcy Friday evening, days before OxyChem was scheduled to head to court over litigation seeking to put YPF on the hook for Maxus' environmental obligations; OxyChem purchased part of Maxus in 1986.
Mon, Jun. 6, 5:35 PM
- Argentina’s state-controlled oil company YPF has selected Total (NYSE:TOT) managing director Ricardo Darre as its new CEO, with an announcement expected later today, Bloomberg reports.
- Darre will replace Miguel Galuccio, who stepped down from the top job in April as Argentine Pres. Macri sought a reorganization of the company; CFO Daniel Gonzalez has been serving as interim CEO.
- Darre led the U.S. exploration and production unit at the French oil company since August 2014; he has held assignments for TOT in Norway, Thailand, Argentina, Russia and France.
Wed, May 11, 12:33 AM
Thu, Apr. 28, 12:25 PM
- Argentina's YPF (YPF -0.2%) says it has been fined ~$500M by the International Chamber of Commerce arbitration court contract cancellations relating to natural gas exports to Brazil over the last decade.
- The Paris-based ICC's court of arbitration's rulings are considered binding, but YPF says it considers the arbitration ruling void.
- Argentina suspended sales of natural gas to neighboring Brazil and Chile in 2004, when its production began to fall, but YPF was controlled by Spain's Repsol at the time of the disputed contracts.
Fri, Mar. 18, 6:52 PM
- YPF CFO Daniel Gonzalez Casartelli is leading a shortlist of candidates to become interim CEO of the oil company, Bloomberg reports.
- Gonzalez, a former Bank of America executive and a former board member of Pegasus Venture Capital, is at the top of a list that includes the current heads of YPF’s E&P division and its refining and marketing unit.
- The decision must be confirmed by Argentina Pres. Macri.
Wed, Mar. 9, 8:26 AM
- Argentina's government has asked YPF CEO Miguel Galuccio to step down next month, as new Pres. Macri looks to pursue new management at the state-controlled oil company.
- The resignation was requested for "due to a restructuring" at the company, according to the official government news agency.
- Galuccio was appointed in 2012 by Argentina's previous president, Cristina Fernandez, who seized control of YPF from Spain's Repsol.
Mon, Mar. 7, 10:34 AM
- Profit on YPF's (YPF -2.4%) shale oil and gas production is "marginal" even with the price of locally produced crude set artificially high by Argentina's government, according to YPF CEO Miguel Galuccio.
- Nevertheless, the CEO says YPF will cut capex in 2016 and put rigs in standby mode, as the state-run producer, which invested a third less in 2015 than it had planned, will have to cut this year's capital budget further by as much as 25%, the CEO says.
- Galuccio says profit margins could improve as the company, which produces most of the shale from the Vaca Muerta formation in a joint venture with Chevron (CVX +2%), reduces exploration costs; he says YPF has cut the cost of drilling each horizontal well to $13M from $16M, and expects the figure to drop to $10M by the end of the year.
- Meanwhile, shale oil output from the vast but barely tapped Vaca Muerta has edged up to 50K boe/day, Galuccio says.
Thu, Jan. 14, 4:58 PM
- YPF and American Energy Partners, run by former Chesapeake Energy founder and CEO Aubrey McClendon, sign a deal to jointly explore and develop unconventional oil and gas projects in Argentina.
- The deal is the latest in a series of international joint ventures by YPF and underscores growing global interest in Argentina's Vaca Muerta shale formation; the state-run company already has signed multibillion-dollar deals with companies including Chevron and Malaysia's Petronas, and last month reached a $500M shale deal with Dow Chemical; unlike the other projects, YPF plans to turn over operations to American Energy in the latest deal.
- McClendon's company will now seek to raise funds over the next two months to assure its 50% participation in a pilot project with YPF that would invest $500M over the next three years.
Dec. 15, 2015, 10:11 AM
- Argentina's state-run YPF (YPF +5.3%) oil company and the local unit of Dow Chemical (DOW -0.5%) plan to invest $400M-$500M to explore for shale gas, Dow Jones reports.
- The companies already are involved in a joint venture which is the leading shale gas project of its kind in Argentina, with production of ~750K cm/day; the aim would be to nearly triple that amount next year to ~2M cm/day.
- The deal would mark the first significant foreign investment in Argentina since newly elected Pres. Macri took office last week.
Nov. 20, 2015, 10:53 AM
- Production from Argentina's Vaca Muerta shale play is expected to double by 2018, according to a new development study by Wood Mackenzie.
- The study says oil and gas output from the play will be moderate in 2016, with a Y/Y production increase of 10%, but the increase will see a sharp upturn by 2020.
- The consultant sees ~200 wells brought online in the region in 2015, with fewer in 2016 as vertical wells are phased down.
- In order to fully develop Vaca Muerta, the study suggests that more joint venture deals will be necessary, as YPF will need outside assistance to develop the 6.3M acres it holds.
- Related tickers: XOM, CVX, RDS.A, RDS.B
Nov. 10, 2015, 3:37 PM
- Argentina's Supreme Court orders government-run YPF (YPF +1.5%) to disclose the details of an investment deal with Chevron (CVX +0.9%) to produce oil and gas by hydraulic fracturing in the Vaca Muerta shale deposit, dismissing claims that releasing confidential information could affect the development of the deal.
- Opposition politicians, environmental groups and others had criticized potential environmental problems and the government's refusal to release all of the contract's provisions; some have alleged the deal contains secret clauses that hand concessions to CVX and undermine national interests.
Oct. 26, 2015, 9:15 AM
Oct. 7, 2015, 2:59 PM
- YPF (YPF +7%) knows the fair value of Petrobras' (PBR +2.4%) local assets and would proceed with an acquisition only if the price meets its criteria, CFO Daniel Gonzalez says, declining to confirm or deny an article in the La Nacion newspaper that said YPF abandoned a bid after Petrobras Argentina (PZE -1.4%) asked it to raise its reported $900M offer for a 67% stake.
- YPF is concentrating on gas projects, Gonzalez says; PZE is focusing mostly on unconventional exploration and production and has started drilling at the vast Vaca Muerta shale gas and oil deposit, where YPF has sunk 400 wells.
Oct. 6, 2015, 6:02 PM
- Argentina's YPF has cut the price it pays to producers of light crude oil, in one of the first signs of closing a gap between high domestic and lower international prices, Bloomberg reports.
- YPF is said to be paying $75/bbl of Medanito, a light crude produced in the Neuquen basin, a slight reduction from $77/bbl earlier this year.
- "Any move to remove distortions in the market is a positive," says Michael Roche, a strategist at Seaport Global Holdings.
Sep. 25, 2015, 12:43 PM
- YPF (YPF -1.3%) would cut spending by as much as 20% next year if a new government in Argentina lowers the domestic oil price nearer to international levels, Bloomberg reports.
- The state-controlled company would lower its 2016 budget from this year’s $6B, mainly in operations at the Vaca Muerta shale formation, according to the report.
- While oil majors broadly cut 2015 spending, YPF kept its capital budget intact from last year, helped by the government which fixed a local oil price $77/bbl; the next administration has said it plans to lower the country’s crude price to $66, triggering the YPF budget cut.
YPF SA engages in the exploration, production and distribution of oil and gas. It operates through the following segments: Exploration and Production, Downstream, and Corporate and Other. The Exploration and Production segment includes contractual purchases of natural gas and purchase of crude... More
Sector: Basic Materials
Industry: Oil & Gas Refining & Marketing